- Following the Inflation report, the stock market dipped down, continuing its downward streak from earlier this week
- Those that followed yesterday's technical analysis for the Nasdaq, we noted our bias that price would decline to test lower key levels, and so it did. Following that decline, buyers stepped in and took the price of all the major indices back to the top of the range, as explained in the video below
- This dynamic, a sort of a "tie" between the bulls and the bears is one of the hallmarks of a trading range. As such, it is a day of consolidation on a bigger timeframe
- The price action reminds us of a game of ping pong. Once price starts going up, long traders are looking to sell and exit their positions, rather than hang on or add to their long positions. And short sellers will be looking to enter new short positions. And vice versa, when the price gets to the bottom of the range, short sellers would be looking to buy in order to close their shorts, and new bulls would be seeking to initiate new longs. Traders do not have a strong believe that stock market moves will have continuations, so they exit and bet on the ping pong ball going back to the other side
- For traders, this price action merits only short term trading periods, so more for intraday traders and not swing traders or those seeking longer term positions. The latter should see the suggested price levels in the stock market technical analysis video below to watch for the upcoming prices where the next 4 hour candles will close
- The market seems to be waiting for new information, possibly next week's earnings reports
- Still, on the weekly timeframe, and despite the delays and volatality, bulls are looking okay
- Please see the technical analysis video below for what the stock market did today, as represented by the Russell 2000 Futures (RTY)
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